In short: Tether plans to conduct a chain swap with a third-party exchange to convert 750 million USDT from Tron to Ethereum ERC20. The total USDT supply won't change during the process. Meanwhile, Tether minted a fresh batch of $1 billion worth of USDT on the Ethereum blockchain to replenish inventory and assist with issuance requests and chain swaps. USDT's circulation hit a peak of over $83 billion this week, thanks in part to investors' fleeing to the world's largest stablecoin amid the latest price deviations of rival dollar-denominated stablecoin TrueUSD (TUSD). Our quick analysis: Tether, the world's most famous stablecoin issuer, has announced its plan to conduct a chain swap between Tron and Ethereum blockchains. But why would they do that? Well, they want to convert a whopping 750 million USDT from Tron to Ethereum ERC20. In essence, a chain swap is moving digital assets from one blockchain to another, which permits traders to use their coins on different supporting blockchains. The total supply of USDT will remain the same during this process, as the company has officially stated. This news comes after Tether recently minted $1 billion worth of its USDT on the Ethereum network. According to Tether's chief technology officer Paolo Ardoino, the new mint is simply an inventory replenishment on the Ethereum network, indicating that the amount is authorized but not issued. Digital asset enthusiasts consider USDT a critical infrastructure piece of the crypto industry, leading to broad use in trading activities on multiple cryptocurrency exchanges. However, the stablecoin issuer has also undergone severe scrutiny over the years over its reserve assets and lack of transparency. But despite the controversy surrounding the company, USDT has grown in dominance this year. Its circulation recently made a new record above $83 billion, which can be attributed to the increasing price deviation of rival TUSD and the diminishing investor confidence of USDC. Last month, Tether expanded its operations in Georgia with an investment in a payment processing company called CityPay.io. The company has also revealed its plans to launch sustainable Bitcoin mining operations in Uruguay. It is exciting to see how Tether's chain swap will affect the crypto industry's growth and whether it will lead to further developments in stablecoins. What do you think about this move? Share your thoughts in the comments below. Image provided by Unsplash Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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